Coal: Taxation

Department for Energy and Climate Change written question – answered on 16th January 2015.

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Photo of Madeleine Moon Madeleine Moon Labour, Bridgend

To ask the Secretary of State for Energy and Climate Change, whether the £2 per ton levied by the Coal Board for restoration on every ton of coal sold prior to the privatisation of the coal industry was paid to his Department; and if he will make a statement.

Photo of Matthew Hancock Matthew Hancock Minister of State (Department for Business, Innovation and Skills), Minister of State for Portsmouth, The Minister of State, Department of Energy and Climate Change

Prior to its sale to private sector purchasers in 1994, the British Coal Corporation was empowered (pursuant to the Coal Industry Nationalisation Act 1946) to license the activities of small-scale, private mining operators and to levy a rent on those operators’ production. Such rents, which varied over time, were a payment for the resource rather than a reserve for subsequent restoration, and it is my understanding that the income they represented was offset against the Corporation’s operating expenditure.

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